Toronto-Dominion Bank has lifted the posted rate for its five-year fixed mortgage by 45 basis points to 5.59% -- the first significant mortgage rate increase among Canada’s big lenders.
Toronto-Dominion, Canada’s second-largest bank lifted its five-year closed rate along with increases to its two-year, three-year, six-year and seven-year mortgage rates, bank spokeswoman Julie Bellissimo said in an e-mailed statement to media.
Banks generally give homebuyers better terms than their posted rates. Canada’s big banks are charging their preferred customers with sound credit quality 3.39% for five-year fixed mortgages and 2.75% for variable mortgages this month, according to RateSpy.com, a mortgage comparison website.
Canada’s housing market has been up-and-down lately. House prices in Toronto have begun to stabilize after dropping sharply from last year’s dramatic spike, while prices in Vancouver have rebounded. Sales volumes are still down from last year however after the government introduced regulations to make mortgages more costly.
Toronto-Dominion’s posted rate is now higher than all of its rivals, including Royal Bank of Canada, Bank of Nova Scotia and Bank of Montreal, which each advertise posted rates of 5.14% on their five year mortgages. Canadian Imperial Bank of Commerce has the lowest posted rate at 4.99%.
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